Virtual Power Plants Could Save Utilities $15-$35B in Capacity Investment Over 10 Years: Report
May 8, 2023
by Paul Ciampoli
APPA News Director
May 8, 2023
A new report from the Brattle Group finds that 60 gigawatts of virtual power plant deployment could meet future U.S. resource adequacy needs at $15–$35 billion less than the cost of the alternative options over the ensuing decade.
The report, Real Reliability: The Value of Virtual Power, provides an introduction to VPPs and models their value and performance versus conventional resource adequacy options.
The report, which was prepared for Google, compares the net cost of providing 400 MW of resource adequacy from three resource types: a natural gas peaker, a transmission-connected utility-scale battery, and a VPP composed of residential demand flexibility technologies.
The study also identifies key near-term activities for enabling the deployment of VPPs, which currently are adopted well below their market potential.
VPPs are distributed energy resource portfolios that can include technologies such as rooftop solar, smart thermostats, smart water heaters, electric vehicles, and distributed batteries.
The report also found that 60 GW of VPP could provide over $20 billion in additional societal benefits – such as those related to emissions and resilience – over ten years.
U.S. Offshore Wind Is Growing, With Nearly 51,400 Megawatts in Development: Report
May 8, 2023
by Peter Maloney
APPA News
May 8, 2023
The U.S. has a pipeline of offshore wind projects totaling nearly 51,400 megawatts, according to a report by the American Clean Power Association.
The Offshore Wind Market Report noted that there are 32 leases in active development and within those leases there are 18 projects in early development and 18 projects in advanced development. Early development projects make up the majority of the pipeline, representing 33,875 megawatts, the report said. There are also 16,564 megawatts of offshore wind projects in advanced development, and 938 megawatts under construction.
In total, there are 51,377 megawatts of offshore wind in the development pipeline in the United States, of which 84 percent, or 43,115 megawatts are on the East Coast with the remaining 8,262 megawatts spread across five leases on the West Coast.
New York State, with 4,362 megawatts, has the most offshore wind capacity in the development pipeline, followed by New Jersey with 3,758 megawatts, the report said.
Public power utilities in New York State are pursuing offshore wind energy. In January 2017, the Long Island Power Authority’s Board of Trustees approved a power purchase agreement to buy energy from New York’s first offshore wind farm.
Offshore wind project development, construction and operations are expected to support up to 83,000 American jobs by 2030, with industry investment set to deliver up to $25 billion per year in economic output, the report found.
The report also found that offshore wind development has domestic shipbuilding, with more than 30 new vessels on order or under construction to support the industry. There are also 14 facilities announced or under construction and investment announcements for major offshore wind components exceeding $1.7 billion.
Nevertheless, despite the growth of offshore wind development, project costs are rising because of supply chain disruptions, commodity price increases, macroeconomic inflationary pressures, and higher interest rates, the report’s authors said, noting that rising steel prices pose a particular challenge for offshore wind developers, as steel represents a significant portion of project material costs.
In addition, lengthy and unclear permitting and regulatory timelines pose further challenges for offshore wind developers, the report said.
Columbus, Ohio, Officials Break Ground on Solar Energy Project
May 5, 2023
by Paul Ciampoli
APPA News Director
May 5, 2023
Officials with the City of Columbus, Ohio, broke ground on May 4 on the Parsons Avenue solar project, one of two new solar projects that will provide 45 megawatts of additional renewable energy to Division of Power customers.
Both projects are being developed and constructed by NextEra Energy.
The Parsons Avenue solar project will generate 27 MW, while the Jackson Pike solar project, which is also beginning construction, will provide an additional 18 MW.
The Jackson Pike project is being developed on a former city landfill site.
“The Department of Public Utilities and our Division of Power is embracing and forging a clean energy future,” said Director of Public Utilities Kristen Atha in a statement. “We are rising to meet the goals within the Columbus Climate Action Plan and understand the critical role our department plays in creating an equitable future for Columbus.”
The Columbus Climate Action Plan commits to achieving carbon neutrality by 2050 and includes a strategy to transition to clean energy sources with specific targets to achieve 200 MW of municipal onsite solar by 2030 and 100% municipal clean energy procurement by 2030.
The city’s Division of Power serves nearly 17,000 accounts and currently provides over 50% clean energy through its power purchase contracts for residents and businesses.
The two projects will increase the division’s provision of clean energy to nearly 60%.
Energy from Solar Project is Now Available to Members of Utah Associated Municipal Power Systems
May 5, 2023
by Paul Ciampoli
APPA News Director
May 5, 2023
Energy from the Red Mesa Tapaha Solar Project in Utah is now available to members of Utah Associated Municipal Power Systems.
The power purchase agreement between UAMPS and Navajo Tribal Utility Authority Generation-Utah, LLC., a subsidiary of Navajo Tribal Utility Authority, makes solar energy available to 15 UAMPS members for 25 years.
The Red Mesa Tapaha Solar Resource is a 72 MW solar photovoltaic generation facility located on the Navajo Nation reservation in southeastern Utah. The project went into commercial operations on April 20, 2023.
UAMPS will purchase power from Red Mesa at $37 per megawatt hour, including renewable energy credits. This gives UAMPS the opportunity to diversify its power sources and provides members with a low-cost, long-term supply of renewable energy.
“The Red Mesa project is a valuable asset to UAMPS members looking to expand their access to clean energy at a competitive price,” said Mason Baker, UAMPS CEO. “This is a valuable alternative energy project that supports both UAMPS and the Navajo Nation community with the possibility of leading to additional projects and partnerships in the future.”
The Red Mesa solar farm is another milestone in the Navajo Nation’s transition to clean, renewable energy.
NTUA has developed two utility scale solar projects within the last three years on the Navajo Nation and is in the process of developing additional solar resources on and off the Navajo Nation reservation.
NTUA will use a significant amount of its proceeds from the proposed project to support electrification on the Navajo Nation, such as its Light Up Navajo mutual aid initiative.
“This project will serve both UAMPS and NTUA customers,” NTUA General Manager Walter Haase said. “UAMPS will be able to add another clean, carbon-free energy asset to their portfolio, while the project has created much needed jobs for the Navajo Nation, will keep NTUA electric rates stabilized, and brings opportunity for electric connection to families who have not had access. It is a win-win situation for everyone.”
CPS Energy Issues Solicitation for Up to 700 Megawatts of Solar Energy
May 4, 2023
by Paul Ciampoli
APPA News Director
May 4, 2023
Texas public power utility CPS Energy recently issued the first request for proposals as part of the utility’s previously approved generation plan to obtain up to 700 megawatts of additional solar energy for its generation portfolio.
The RFP is the first of a two-part effort to increase solar generation and diversify community solar options for CPS Energy customers. A separate RFP for community solar is under development and will be released in the coming months.
CPS Energy has 551 MW of existing solar capacity and in Fiscal Year 2023, CPS Energy secured an additional 580 megawatts (MW) of solar, along with 50 MW of storage and 500 MW of natural gas firming capacity. The utility has 1,131 MW of solar generation already under contract.
In January of this year, the utility’s Board of Trustees also voted on and approved a blend of gas, solar, wind and energy storage as part of the generation planning process, aimed at how to power San Antonio into the future.
When the RFP is complete, CPS Energy expects to have over 1,800 MW of solar generation operational or under contract to serve the community in the future.
The deadline to submit proposals in response to the RFP is June 1. After the closing date, CPS Energy will begin evaluations with a goal of making selections in the summer of 2023.
Respondents can view the RFP and must submit information through this link.
NYPA Gets New Authority to Develop, Own and Operate Renewable Energy Projects
May 4, 2023
by Paul Ciampoli
APPA News Director
May 4, 2023
The New York Power Authority has been given new authority to develop, own, and operate renewable energy generating projects, either alone or in collaboration with other entities, under a recently enacted state budget, NYPA said on May 3.
The new authority will allow NYPA to assist the state in meeting its clean energy targets, including producing 70% of the state’s electricity from renewable sources by 2030 and creating a zero-emission statewide electrical system by 2040.
In addition, NYPA will lead the state’s effort to decarbonize its electric grid by ceasing fossil fuel-based electricity production at its peaker power plants by 2030. NYPA will also develop action plans to decarbonize 15 of the highest emitting state facilities.
NYPA is formalizing internal task forces charged with advancing the key pillars of the new legislation: renewable development, a new Renewable Energy Access and Community Help program to benefit disadvantaged communities, labor training and NYPA peaker plant retirement. One action already underway is a review of the Power Authority’s own assets for renewable development.
“I have directed Power Authority leadership to immediately analyze all NYPA-owned land for potential renewable development opportunities,” said NYPA Acting President and CEO Justin Driscoll. “We will use every tool available to ensure that the Power Authority leads the effort to advance the Governor’s bold climate action priorities for the benefit of all New Yorkers.”
NYPA said it will now begin extensive work toward the publication of its first two-year strategic plan, outlining its strategies and proposed renewable projects, after collaboration with stakeholders and a public comment process that includes public hearings. The plan will be updated at least annually after public comment.
In addition, the Power Authority said it will develop and publish an action plan within the next two years to deliver upon its commitment to phase-out electricity production from its fossil fuel peaker power plants.
NYPA will also consider the appropriateness of using the plants and the sites for renewable generation, energy storage or electric grid support needs.
The law also empowers NYPA, in partnership with the Public Service Commission, to support disadvantaged communities with the new Renewable Energy Access and Community Help program.
The program will enable low-income and moderate-income electricity consumers to receive bill credits through the production of renewable energy products developed by or for NYPA in New York.
In addition, the enactment authorizes NYPA to contribute up to $25 million annually to the Department of Labor for workforce development in the renewable energy sector.
NYPA expects to be able access new and existing federal tax credits provided by the Inflation Reduction Act of 2022 to lower the costs of certain renewable energy projects that it would undertake under the enactment. The IRA tax credits, such as the investment tax credit and the production tax credit, are now directly payable to governmental and other non-taxable entities like NYPA.
NYPA also will leverage its energy service and engineering expertise to assist the 15 highest emitting state facilities by creating decarbonization action plans for the facilities.
“The action plans will accelerate the state’s progress toward a cleaner building sector, support the creation of high-quality jobs at future decarbonization projects—including thermal energy networks—and move the state closer to reaching its climate goals,” NYPA said.
Draft RFP in Massachusetts Calls for Procurement of Up to 3,600 MW of Offshore Wind
May 4, 2023
by Paul Ciampoli
APPA News Director
May 4, 2023
The Massachusetts Department of Energy Resources and investor-owned utilities in the state jointly filed a draft request for proposals with the Massachusetts Department of Public Utilities, which if approved, will invite submittals for offshore wind generation to procure up to 3,600 megawatts.
The draft RFP’s capacity figure represents 25 percent of the state’s annual electricity demand and a significant increase over a previous procurement, which sought approximately 1,600 MW of offshore wind. This would be the largest procurement for offshore wind energy generation ever in New England.
As drafted, the RFP will allow DOER to consider in its evaluation direct and indirect costs and benefits, environmental and socioeconomic impacts from siting, and diversity, equity, and inclusion plans.
The RFP also allows for additional flexibility in proposals. To account for challenges driven by inflation and other macroeconomic trends, the draft RFP allows bidders to submit an alternative indexed pricing proposal intended to reduce risk to bidders and ratepayers.
The RFP also accounts for the potential for savings resulting from federal tax credits. The RFP requires details on how the bids would utilize applicable tax credits and allows for flexibility in the RFP schedule if IRS program guidance on the Inflation Reduction Act is announced late in the bid preparation timeline.
The procurement team would have flexibility to evaluate bids ranging from 400 MW to 2,400 MW in size, and to select a project or projects that bring significant benefits to the Commonwealth.
Under the proposed timeline, bids are due January 31, 2024. This proposed timeline allows project developers to incorporate several emerging initiatives, including anticipated federal program guidance on tax credits, federal grants for transmission upgrades, and additional coordination with regional state partners.
California CCA Group Issues Request for Information on Offshore Wind Projects
April 27, 2023
by Peter Maloney
APPA News
April 27, 2023
California Community Power recently issued a request for information for offshore wind projects in the Humboldt and Morro Bay areas, as well as other possible offshore wind developments.
California Community Power, which represents nine community choice aggregators from Humboldt to Santa Barbara counties, said it plans to use the results of the RFI to inform board recommendations regarding procurement, readiness, and barriers to offshore wind projects.
In 2021, the Department of the Interior with the Department of Defense and the state of California identified Morro Bay off California’s central coast as an area that could support up to 3 gigawatts of offshore wind projects. Together with the Humboldt area off the state’s northern coast Interior the areas could support as much as 4.6 gigawatts of offshore wind energy.
In December 2022, the Bureau of Ocean Energy Management, a division of the Department of the Interior, awarded five leases for offshore wind power development along the California coast.
“Offshore wind energy can provide steady, valuable, and renewable energy to meet California’s clean energy needs, including during heat storms when the grid is taxed,” Matthew Marshall, California Community Power board member and Redwood Coast Energy Authority executive director, said in a statement. “This RFI fits with the goals of CC Power. Gathering information and signaling interest in offshore wind is a prudent step for CC Power to gear up in exploring contracting for new offshore wind resources.”
If contracted for development by California Community Power, the offshore wind projects would be included in each community choice aggregator’s resource plan, and California Community Power said it would administer contracts to drive development and operations of new resources.
California Community Power members represent 2.7 million customers across 112 municipalities.
“This joint-action RFI will focus on California’s opportunity for floating offshore wind turbines, a technology gradually being deployed around the world,” Alex Morris, general manager of California Community Power, said in a statement. “This RFI helps us build formal recommendations on procurement for our Board and will inform strategies to address needs for port infrastructure and expanded electrical grid transmission, known barriers for offshore wind development in California.”
More information regarding the California Community Power Request for Information is available at https://cacommunitypower.org/solicitations/.
California’s Peninsula Clean Energy Reaches Agreements to Install Solar and Battery Storage
April 24, 2023
by Paul Ciampoli
APPA News Director
April 24, 2023
Peninsula Clean Energy has reached innovative agreements with nine cities and the County of San Mateo, Calif., to install solar and future battery storage on public buildings, the California community choice aggregator said on April 18.
Peninsula Clean Energy is executing 20-year power purchase agreements to install 1.7 megawatts of solar power on 12 public buildings in San Mateo County and the City of Los Banos.
The agreements include solar power systems at the San Mateo County Human Services Agency Center in Redwood City; Atherton Town Hall; Brisbane Mission Blue Center; Colma Community Center; Hillsborough Public Works Yard; Los Banos Community Center; Los Banos Wastewater Plant; Millbrae Town Center complex; Millbrae Recreation Center; Pacifica Community Center; San Bruno Aquatics Center; and the San Carlos Youth Center.
In addition, at least three communities will be adding battery storage to provide backup power.
The solar power installations are expected to be operational by the end of 2023 and deliver an estimated $17 million in lifetime energy savings to participating cities and San Mateo County.
Peninsula Clean Energy is providing the construction capital and is among the first to utilize the direct pay benefits included in the federal Inflation Reduction Act, it said.
This allows qualified tax-exempt project developers to directly claim the full value of the 30-percent federal Investment Tax Credit without having to share the value of the credit with a tax equity partner. The result is a lower PPA price and higher energy savings for the cities and county facilities where these projects will be installed, the CCA noted.
“We want to do everything we can to bring more renewable power online. With this innovative program, we take the burden of solar and storage project development off of city and county staff and achieve cost reductions through scale,” Peninsula Clean Energy CEO Jan Pepper said. “This is a win for our customers as well as a win for Peninsula Clean Energy in continuing to execute on our public agency mission. Congress and the Biden administration have given us a valuable tool with ‘direct pay’ under the Inflation Reduction Act.”
A second round of the program is also already underway, with Peninsula Clean Energy having completed designs and interconnection applications for more than 40 sites to install approximately 15 MW of solar and potentially battery storage systems across its service territory.
DOE Offers Awards to Recognize Best Practices in Community Solar Projects
April 24, 2023
by Paul Ciampoli
APPA News Director
April 24, 2023
The Department of Energy on April 20 said it was offering $200,000 in prize awards for community solar projects and programs that increase equitable access and ensure benefits go to subscribers and their communities.
The Sunny Awards for Equitable Community Solar were announced by DOE’s Solar Energy Technologies Office. Applications will be accepted until July 14, 2023.
In its second year, the Sunny Awards recognize community solar projects, and state, municipal, Tribal, and utility-led community solar programs that employ best practices in delivering benefits to their subscribers and communities.
This second round offers up to five $10,000 Sunny Awards Grand Prizes to the top teams, up to 30 additional $2,500 Sunny Finalist Awards, and up to 15 $5,000 Meaningful Benefits/Engagement Awards to competitors who find effective ways to equitably deliver the specific, meaningful benefits of community solar identified by the National Community Solar Partnership, DOE said.
In 2020-2021, the American Public Power Association partnered with the National Community Solar Partnership on the Municipal Utility Collaborative to identify and address common barriers to community-based solar for public power.
Click here for additional details.
National Community Solar Partnership Selects Teams to Participate in Competition
Separately, DOE announced that the National Community Solar Partnership has selected 25 teams to participate in the $10 million Community Power Accelerator Prize competition, which aims to establish a nationwide network of community solar project developers.
Successful teams have the potential to deploy as much as 150 megawatts of community solar across the country and access $5 billion in private sector financing through the Community Power Accelerator.
Click here for additional details including the list of the 25 teams selected.